Mr. Don Currie reports

HILLCREST CLOSES SHARES FOR DEBT OFFERING

Further to Hillcrest Energy Technologies Ltd.'s news release dated March 31, 2026, the company has closed the shares for debt offering originally announced on March 23, 2026. The offering of units of the company was completed with 2,912,731 unit being issued at 18 cents per unit for the aggregate amount of $524,299.17 in previously accrued debt being settled.

Each unit consists of one common share in the capital of the company and one share purchase warrant. Each warrant entitles the holder to purchase an additional share at a price of 20 cents per warrant share for a period of 12 months following the date of issuance of the warrant.

A total of $116,899.17 was settled in connection with previously accrued fees owing to four directors of the company. Each such issuance of units to the insiders constitutes a related party transaction as defined in Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transaction. The company is relying on the exemption from valuation requirement and minority approval pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the participation by the insiders in the offering does not represent more than 25 per cent of the fair market value of the company's market capitalization

All securities issued in connection with the offering are subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is an energy technology company focused on providing advanced power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the Canadian Securities Exchange under the symbol HEAT, on the OTCQB Venture Market as HLRTF and on the Frankfurt exchange as 7HI.

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